People go on gifting sprees during the festive season – one of the biggest spanning from Dussehra to Diwali – and often overspend during these times. Despite challenging cash purchases, technological advancements have made overspending much more manageable by enabling options such as EMIs, digital loans, and buy now pay later (BNPL).
The e-commerce sector of India has changed the way business is done and has also opened up new segments such as business-to-business (B2B), direct-to-consumer (D2C), and consumer-to-business (C2B).
Due to changes in business practices, businesses have boosted their festival sales and purchase volumes. Digital payments are predicted to grow following two consecutive downbeat festive phases in the current quarter.
Spending on the festival season in 2022 will reach $32 billion, according to LocalCircles, a company providing citizen engagement tools. Retail spending is expected to increase by 20% over the last year, with 49% of consumers shopping in stores and 38% online.
According to Redseer, Amazon and Walmart’s Flipkart will both report sales of $11.8 billion this year; Offline sales should increase from $8.5 billion last year to $15.2 billion this year.
Digital payments can be beneficial during this festive season
Digital payments have been proliferating as the preferred payment method for consumers over the last few years. This trend can be witnessed during the festive season when transaction volumes increase significantly compared to other times of the year.
Using digital payment methods like UPI, ePOS, mobile wallet, payment link, prepaid cards, and internet banking. As a result of the convenience it provides, along with the added benefits of cashback and exclusive discounts, it is a great sales booster during the festive season.
The festive season offers customers a variety of digital payment options
Users can make fund transfers through the Unified Payments Interface (UPI) using a smartphone app without providing their IFSC code or account number. The payments are made in real-time and are credited instantly.
UPI is the fastest-growing form of digital payment due to its ability to work through virtual addresses, known as Virtual Payment Addresses (VPA).
ePOS system –
The ePOS system is a combination of software and hardware that runs from a single device and helps you to speed up checkout processes, process transactions, and keep track of inventory.
ePOS accepts cash, credit and debit cards, mobile payments, and online orders, making payment tracking much more accessible than traditional cash registers and making your customers much happier.
Mobile wallets –
A mobile wallet is an app that keeps a digital copy of your debit and credit card information on your mobile devices. Paying with a mobile wallet is more convenient than paying with plastic credit and debit cards or cash because you can use your phone to make payments.
You can pay people and vendors using your mobile device at the mall or grocery store. The details of your credit and debit cards are stored securely with the bank.
Payment Links –
Payment links are URLs or QR codes that direct customers to a web page that can be created in seconds. Clicking on these links sends customers to a checkout page where they can complete a transaction.
The payment links can facilitate transactions for an unlimited number of customers. Each link can be linked to a single intended recipient, like an invoice. It also enables payments to be made using UPI, Buy Now Pay Later, Cards, Netbanking, and Mobile Wallets.
Prepaid Cards –
A prepaid card is a card that contains a stored value and can be used to make purchases. Unlike credit and Debit cards, however, a prepaid card is not linked to a bank account.
The prepaid card functions as a prepaid debit card and can accept money from various sources, storing it for later use. They are often associated with a network such as MasterCard or Visa. Furthermore, giving new and returning customers a dedicated card exclusively at festival sales encourages them to visit more often.
Internet Banking –
Online banking, or virtual banking, is commonly known as Internet Banking. An electronic payment system enables customers to conduct financial transactions through banks or other financial platform providers.
As a primary function, the system allows for fund transfer by NEFT, RTGS, ECS, IMPS, making deposits, paying bills, and recharging, tracking accounts, checking balances, placing orders for bank products, and taking advantage of add-on services (Mutual funds, Insurance purchase, loan applications).
Digital payments will increase during the festive season for SMEs.
Small businesses rely heavily on banks, non-banking finance companies, fintech platforms, etc., that offer financial assistance, as well as employment. They enable a business to flourish and expand. It is crucial for these businesses to have timely and reasonable access to finance if they are to grow and prosper.
The festive season is the biggest season for sales across all channels, whether offline or online. Moreover, India has seen a significant shift towards digital payments in recent years.
Consumers are incredibly trusting of digital payment methods when making high-value payments, and secure, tech-enabled payment methods offer a wide range of opportunities as sales enablers.
With digital payment systems, businesses can expand their reach, and customers can pay quickly and affordably online. This peak season is a perfect time for businesses to take advantage of increased consumer demand to realize maximum revenue; Checklist items include ensuring stock availability, an efficient supply chain and distribution network, and a seamless online payment system.
The efficiency of payment workflow is one aspect that will dramatically improve festive sales, and businesses can efficiently utilize online payment services to accept payments.